First Step in Choosing an out-of-state investment location

[Chris West]

Hey guys!

New investor here. I am currently living in San Diego, CA, and am therefore looking for out-of-state locations to invest in my first rental property. I have no interest in investing in San Diego or Southern California, as I plan to move back to the VA area in the near future.

Looking for a single family home and plan on implementing the BRRR strategy. I am struggling with the process of determining how to select an OOS investment city/market. At this point, I have created a spreadsheet with various locations that look appealing (Charlotte NC, Memphis TN, Dallas TX) and am utilizing the MLS (realtor.com) and comparing rental rates on rentometer to determine which locations meet the 1% criteria. My plan: once I have determined which potential cities meet the 1% criteria, I plan to assess statistics (population growth, job market, crime rates etc.) to help me to determine which areas are most appealing and then dig deeper. Is this a good approach? Is there a more effective way I should be prioritizing my search? Is there any flaws in this approach?

Any suggestions are greatly appreciated! 

Thanks!